Understanding Value Investing Principles

In order to understand the principles of value investing, a thorough understanding of the difference between “investing” and “trading” is important. A trader takes long and/or short positions in order to gain short-term profits by capitalizing on price movements caused by short-term disparities in the supply and demand of the moment. To a trader, the fundamental wellbeing of the underlying corporation (or economy in the case of the forex market) matters not. A trader’s only concern is the

The Importance of Volume

When a trader or investor calls up a price chart on a trading platform to perform analysis for the purpose of making a trading decision, most platforms will usually include a volume indicator along with price. If a survey among successful traders is taken that asked what are the most important factors that influence a decision to execute a trade, there’s a very high probability the one of the top three factors will be volume. For any tradable

Major Economic Indicators and News

Every financial market is subject to the extreme price fluctuations that result from the announcements of major economic indicators, or unexpectant news. Macro-level economic indicators such as consumer price index (CPI), Gross Domestic Product (GDP), and unemployment numbers are just a few of the indicators that have a broad impact on all financial markets. Very often however, it’s not the announcement of the actual economic indicator data that moves the markets, it’s whether the number announced met market